What are Ordinary Dividends and requirements to report?

Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. Dividends are distributions of money, stock, or other property a corporation pays you because you own stock in that corporation. You also may receive dividends through a partnership, an estate, a trust, or an association that is taxed as a corporation. Most distributions are paid in cash. An individual may also receive distributions such as additional stock, stock rights, other property or services. Ordinary dividends are the most common type of distribution from a corporation. They are paid out of the earnings and profits of the corporation. Ordinary dividends are taxable as ordinary income unless they are qualified dividends. You have to include the sum of all ordinary dividends received from all sources.

You should receive a Form 1099-DIV , Dividends and Distributions, from each payer for distributions exceeding a certain limit.

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